In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for The Exercise Coach franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for The Exercise Coach franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned The Exercise Coach outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on The Exercise Coach franchise opportunity

Section V – Presentation and analysis of The Exercise Coach’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 average, median, high, and low adjusted gross revenues for the 166 franchised The Exercise Coach locations that were in operation at least 12 months as of December 31, 2023, by quartile

• 2023 average, median, high, and low adjusted gross revenues for the 97 franchised The Exercise Coach retail locations that were in operation at least 12 months as of December 31, 2023

• 2023 average, median, high, and low adjusted gross revenues for the 69 franchised The Exercise Coach non-retail locations that were in operation at least 12 months as of December 31, 2023

• 2023 average, median, high, and low monthly rent; monthly marketing and promotion; monthly utilities, phones, ISP; and monthly payroll for the 97 franchised The Exercise Coach retail locations that were in operation at least 12 months as of December 31, 2023

• 2023 average, median, high, and low monthly rent; monthly marketing and promotion; monthly utilities, phones, ISP; and monthly payroll for the 69 franchised The Exercise Coach non-retail locations that were in operation at least 12 months as of December 31, 2023

Section VI – Key ratios, comparables, computations, and analyses for The Exercise Coach franchise opportunity (exclusive content for Platinum subscribers)

Section I – The Exercise Coach Franchise Costs

• Initial Franchise Fee:  $49,500
• Initial Training Fee or Multi-Unit Operator Training Fee:  $2,500
• Food, Lodging, and Travel (up to 4 people):  $1,000 to $7,000
• Lease Deposit and 3 Months’ Rent:  $8,000 to $18,000
• Utilities Deposits:  $100 to $1,000
• Build Out and Improvements:  $0 to $65,000
• Signage:  $2,300 to $8,000
• Furniture, Decorations, and Furnishings:  $4,200 to $6,315
• Computer System:  $1,250 to $3,500
• Technology Expense (3 months):  $1,554
• Third-Party Operating Software Expenses (3 months):  $1,586
• Telephone and Internet Services (3 months):  $400 to $1,200
• Fitness Equipment Package:  $10,350 (financed) to $88,339 (paid in full)
• Shipping, Installation, and Setup of Fitness Equipment Package and Other Equipment:  $6,577 to $11,377
• Initial Supply of Inventory:  $2,550 to $4,250
• AED and First Aid Kit:  $1,350 to $2,100
• Uniforms:  $600 to $1,000
• Pre-Opening Marketing and Advertising, Plus Print Collateral Material:  $14,195 to $20,775
• Post-Opening Marketing and Advertising (3 months):  $15,000 to $22,500
• Business License:  $250 to $750
• Professional Fees:  $2,620 to $5,240
• Insurance (3 months’ premium):  $800 to $1,500
• Startup Payroll (3 months):  $10,000 to $20,000
• Additional Funds (3-month period after opening):  $25,000 to $40,000
• Total Estimated The Exercise Coach Franchise Costs:  $161,682 to $382,986

Section II – The Exercise Coach’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial Franchise Fee:  $49,500
• Royalty Fee:  greater of (i) 6% of monthly Adjusted Gross Revenue or (ii) $1,000 per month (waived for first full or partial calendar month of operation)
• Brand and System Development Fund Fee:  1% of Adjusted Gross Revenue
• Local Marketing Fee:  ranges from $4,000 to $6,000 per month
• Cooperative Advertising Fee:  up to $2,000 per month

Section III – Number of Franchised and Company-Owned The Exercise Coach Outlets

Franchised

2021

• Outlets at the Start of the Year:  95
• Outlets at the End of the Year:  132
• Net Change:  +37

2022

• Outlets at the Start of the Year:  132
• Outlets at the End of the Year:  171
• Net Change:  +39

2023

• Outlets at the Start of the Year:  171
• Outlets at the End of the Year:  195
• Net Change:  +24

Company-Owned

2021

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  2
• Net Change:  0

2022

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  0
• Net Change:  -2

2023

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

Section IV – News Updates on The Exercise Coach Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for The Exercise Coach Franchise (Item 19, 2024 FDD)

• As of December 31, 2023, The Exercise Coach had 195 franchised Exercise Coach Businesses (“Franchised Locations”) in operation. The tables below provide information on the 166 Franchised Locations that were in operation at least 12 months as of the fiscal year end (“Reporting Group”).

• The Reporting Group consists of 97 retail Franchised Locations and 69 non-retail Franchised Locations. The Reporting Group includes 2 outlets that were previously operated as affiliate-owned locations and were sold as franchises in 2022.

• The Exercise Coach has excluded the following Exercise Coach Businesses:

• 27 Franchised Locations that opened after January 1, 2023;
• 3 Franchised Locations that ceased operations and were terminated during the 2023 calendar year;
• 1 Franchised Location that temporarily ceased operations during 2023; and
• 1 Franchised Location that began the year as 2 outlets, then consolidated into 1 outlet.

• The information in the table below is a historical financial performance representation for the Reporting Group for the 2023 calendar year (“Reporting Period”). The financial information was prepared from internal accounting records and reports.

• The Exercise Coach Businesses included in this financial performance representation offer similar services and face a similar degree of competition anticipated for the Exercise Coach Businesses offered under the Franchise Disclosure Document.

Part 1 – Adjusted Gross Revenue for the Reporting Group During the Reporting Period

• The information provided in Part 1 below consists of the actual performance of the Franchised Locations in the Reporting Group during the Reporting Period.

• In Part 1A, The Exercise Coach has divided the 166 Franchised Locations into 4 quartiles. Quartile 1 represents the 41 highest performing Franchised Locations; Quartile 2 represents the 42 second highest performing Franchised Locations; Quartile 3 represents the 41 third highest performing Franchised Locations; and Quartile 4 represents the 42 lowest performing Franchised Locations.

• In Part 1B, The Exercise Coach has divided the 166 Franchised Locations between retail and non-retail Franchised Locations.

Part 1A – Adjusted Gross Revenue for the Reporting Group During the Reporting Period, by Quartile

Quartile 1 (41 Franchised Locations)

• High Adjusted Gross Revenue:  $522,197
• Low Adjusted Gross Revenue:  $335,662
• Average Adjusted Gross Revenue:  $414,598
• Number and Percent Attaining Average:  17 of 41 (41%)
• Median Adjusted Gross Revenue:  $400,650

Quartile 2 (42 Franchised Locations)

• High Adjusted Gross Revenue:  $332,006
• Low Adjusted Gross Revenue:  $261,571
• Average Adjusted Gross Revenue:  $292,687
• Number and Percent Attaining Average:  20 of 42 (48%)
• Median Adjusted Gross Revenue:  $293,290

Quartile 3 (41 Franchised Locations)

• High Adjusted Gross Revenue:  $261,109
• Low Adjusted Gross Revenue:  $216,817
• Average Adjusted Gross Revenue:  $239,007
• Number and Percent Attaining Average:  20 of 41 (49%)
• Median Adjusted Gross Revenue:  $235,803

Quartile 4 (42 Franchised Locations)

• High Adjusted Gross Revenue:  $216,689
• Low Adjusted Gross Revenue:  $78,562
• Average Adjusted Gross Revenue:  $174,183
• Number and Percent Attaining Average:  25 of 42 (60%)
• Median Adjusted Gross Revenue:  $181,388

Part 1B – Adjusted Gross Revenue for the Reporting Group During the Reporting Period, by Location Type

All Retail (97 Franchised Locations)

• High Adjusted Gross Revenue:  $522,197
• Low Adjusted Gross Revenue:  $78,561
• Average Adjusted Gross Revenue:  $282,561
• Number and Percent Attaining Average:  36 of 97 (37%)
• Median Adjusted Gross Revenue:  $267,955

All Non-Retail (69 Franchised Locations)

• High Adjusted Gross Revenue:  $518,855
• Low Adjusted Gross Revenue:  $133,071
• Average Adjusted Gross Revenue:  $276,580
• Number and Percent Attaining Average:  29 of 69 (42%)
• Median Adjusted Gross Revenue:  $255,901

• “Adjusted Gross Revenue” means (for purposes of this Item 19) all gross sums collected from all goods and services that were sold by the outlet (including all membership, class package, and supplement revenue) plus all other sums collected by the outlet from the operation of the franchised business, including the proceeds of any business interruption insurance. “Adjusted Gross Revenue” does not include sales or use taxes.

• The Exercise Coach’s personal training studios may be located in commercial retail space such as a shopping center or mixed use development, anchored by large grocery stores, or a professional office building or development.

Part 2 – Selected Monthly Operating Expenses for the Reporting Group During the 2023 Calendar Year

• The information provided in Part 2 below consists of the actual performance of the Franchised Locations in the Reporting Group during the Reporting Period that responded to The Exercise Coach’s annual expense survey (“Survey Reporting Group”). The Exercise Coach has provided selected monthly operating expenses for these Franchised Locations, separated between retail Franchised Locations (42 outlets) and non-retail Franchised Locations (35 outlets).

Retail Locations

Monthly Rent

• Low:  $1,500
• High:  $7,155
• Average:  $3,350 (14.2% of monthly adjusted gross revenue)
• Number and Percent Attaining Average:  24 of 42 (57%)
• Median:  $3,210

Monthly Marketing and Promotion

• Low:  $342
• High:  $5,500
• Average:  $2,955 (12.5% of monthly adjusted gross revenue)
• Number and Percent Attaining Average:  23 of 42 (55%)
• Median:  $3,058

Monthly Utilities, Phone, ISP

• Low:  $239
• High:  $860
• Average:  $486 (2.1% of monthly adjusted gross revenue)
• Number and Percent Attaining Average:  22 of 42 (52%)
• Median:  $476

Monthly Payroll

• Low:  $1,475
• High:  $17,250
• Average:  $9,014 (38.3% of monthly adjusted gross revenue)
• Number and Percent Attaining Average:  23 of 42 (55%)
• Median:  $8,331

Non-Retail Locations

Monthly Rent

• Low:  $1,350
• High:  $5,450
• Average:  $2,990 (13.0% of monthly adjusted gross revenue)
• Number and Percent Attaining Average:  20 of 35 (57%)
• Median:  $2,886

Monthly Marketing and Promotion

• Low:  $300
• High:  $7,824
• Average:  $3,144 (13.6% of monthly adjusted gross revenue)
• Number and Percent Attaining Average:  20 of 35 (57%)
• Median:  $2,989

Monthly Utilities, Phone, ISP

• Low:  $30
• High:  $800
• Average:  $321 (1.4% of monthly adjusted gross revenue)
• Number and Percent Attaining Average:  22 of 35 (63%)
• Median:  $300

Monthly Payroll

• Low:  $3,000
• High:  $17,917
• Average:  $9,882 (42.9% of monthly adjusted gross revenue)
• Number and Percent Attaining Average:  16 of 35 (46%)
• Median:  $10,000

• “Adjusted Gross Revenues” means (for purposes of this Item 19) all gross sums collected from all goods and services that were sold by the outlet (including all membership, class package, and supplement revenue) plus all other sums collected by the outlet from the operation of the franchised business, including the proceeds of any business interruption insurance. “Adjusted Gross Revenues” does not include sales or use taxes.

• “Rent” includes base rent plus any associated property taxes, property insurance premiums, and maintenance costs (i.e., triple net expenses).

• “Marketing and Promotion” includes Facebook, Google, and other digital marketing; magazines, periodical, and TV advertisements; direct mail; networking events; and miscellaneous promotion.

• “Utilities, Phone, ISP” includes phone, electric, water, gas, and internet service.

• “Payroll” includes all payroll taxes and processing fees, but excludes owner’s wages.

• It is important to note that this figure does not include (a) every single item that could be considered an operating cost or (b) all the costs of goods you will incur relating to the operation of a new franchised personal training studio or suite. Specifically, among those operating costs/expenses that are not included under “Certain Operating Expenses” are those related to:

• salary, draw, or other compensation for the owner of each studio or suite;
• meals and expenses incurred by the owner while promoting the studio or suite;
• automobile/vehicle expenses;
• certain taxes, including state-specific payroll and property taxes;
• fees that might be charged by a third-party provider for payroll processing;
• bank service fees;
• fees for your water filtration lease, which The Exercise Coach estimates to be $720 per year based on the national rate it negotiated with its required vendor;
• general supplies, such as cleaning supplies and office consumables;
• professional fees;
• costs for repairs and maintenance;
• miscellaneous costs such as travel expenses and/or uniform expenses;
• royalty and credit card fees, both of which are based on gross revenue;
• insurance premiums, which are estimated to be approximately $3,800 per year if you purchase only The Exercise Coach’s minimum required insurance policies; or
• software fees, which are estimated to be approximately $6,344 per year for fees paid to third-party licensors and $6,700 per year for fees paid to The Exercise Coach’s affiliate for the Exerbotics technology fee.

• The financial performance representations do not reflect all the costs or expenses that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit.

• Some Exercise Coach businesses have earned this amount. Your individual results may differ. There is no assurance that you will earn as much.

Section VI – The Exercise Coach Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️